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YYY Limited's shares are trading in the market at $10. YYY today announced a renounceable rights issue offer which provides you with a right to

YYY Limited's shares are trading in the market at $10. YYY today announced a renounceable rights issue offer which provides you with a right to subscribe for one new share at $8 for each four shares that you hold.

Calculate the price of the right.

Calculate the theoretical ex-rights share price.

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